Mortgage Question???

[ashersdad]

We are currently looking at house plans and planning to build this year sometime. My question is, what is an "ideal" % of income to pay for your mortgage. I am very comfortable with our current mortgage and am a little nervous with more than doubling it. Even though I know we can afford it. Any thoughts???

 

[IDHunters]

If you are nervous about it, its too much. Really, its all about what you want to afford. Why don't you take the proposed increase in your mortgage payment and put it in the bank for a couple months and see how it effects the household budget? If its not comfortable, you are not tied to a 30 year payment.

 

[MNHunter]

C'mon take the plunge! I doubled my mortgage starting 2 weeks from today (actually closing is in 2 weeks, first payment will be Aug 1). Can't wait to make the new and improved payment!

 

[A-con]

Someone once told me 25% of your take home pay was the maximum you want going out for a mortgage.

 

[hntrjohn]

Old school of thought was purchase price 1.5 times annual income.
make 50 K a year, 75,000 dollar house.

Does it still apply today???

 

[wilecoyote76]

Old school of thought was purchase price 1.5 times annual income.
make 50 K a year, 75,000 dollar house.

Does it still apply today???

The problem around here is that you cannot find land, let alone a house + land for $75K. Things are just way too expensive it seems to use this type of calculator. If that's the case, people here in the valley should be making well into the 6 digit figure salary to afford homes and I don't see it........but people spend like they do!

 

[Steiny]

I think that 1.5 times annual pay is plenty to bite off.
Better to rent and have money than to have a mortgage and be broke.

 

[Moosie]

Actually the number is 2 times .. but with the car payments and CC payments people hold It makes that tough to swallow.

Whatever you can afford is the right amount. Some people spend 50% of their checks on car payments. whats the right amount for a car payment ?

If I remember your posts right I think you have a bit o' money. You probably know how to handle it. Go with your gut feeling and good luck. So how big is the ne place anyways ?!?!

 

[ashersdad]

Thanks for the replies everyone.

Moosie, the plans we are looking at are around 4300 sq. feet. All I care about is a BIG garage, a BIGGER trophy room (not that I have anything to fill it with), and a DOUBLE HEADED shower humphump. The rest of the house is what the wife wants.

 

[Moosie]

HAHA.. My plans for my next house is EXACTLY that.... Priority,

1. Trophy room
2. Double headed shower
3. Bigger Garage......to.....store more junk in and still park outside

 

[KimLeeJung]

HAHA.. My plans for my next house is EXACTLY that.... Priority,

1. Trophy room
2. Double headed shower
3. Bigger Garage......to.....store more junk in and still park outside

I have never thought of that before. That would be a great idea...

 

[Steiny]

As one who has done the big garage, big trophy room thing, I will remind you that you will be raising your personal "overhead" considerably. Lot's more lights, heat and AC to pay for, more to keep cleaned up, more maintenenace, etc.
Just something to consider.

 

[Moosie]

.....for someone with alot of money, You sure whine alot Steiny

 

[Steiny]

Not whining.
It's a simple equasion. The more bills you got to pay, the more you got to work to pay em -vs- dicking off hunting, fishing, or something.
I spent about $2000 last winter heating my shop / bar / trophy room. Should have spent more on insulation and put in-floor radiant heat in it.

 

[schmalts]

Thanks for the replies everyone.

Moosie, the plans we are looking at are around 4300 sq. feet. All I care about is a BIG garage, a BIGGER trophy room (not that I have anything to fill it with), and a DOUBLE HEADED shower humphump. The rest of the house is what the wife wants.

4300 feet? That isn't a house, it's a palace

 

[Whiskers]

4300 feet? That isn't a house, it's a palace

You got that right, we raised a family in a 1500 sq ft house, and 500 of that was basement...cold, damp, basement.

and a DOUBLE HEADED shower

Heck I can't even get head in one shower, let alone two of em.